Islamabad, Oct 8: PSO Seeks Autonomy to Compete Against International Oil Companies
Pakistan State Oil (PSO) is seeking greater autonomy from the federal government to enhance its competitiveness against international oil marketing companies (OMCs) that have entered Pakistan’s petroleum market.
The PSO board of directors has requested exemptions from the Public Procurement Regulatory Authority (PPRA) rules and additional authority for quicker decision-making to help maintain its market share, as reported by a national daily.
In a letter addressed to the petroleum secretary, PSO Seeks Autonomy emphasized its unique role as the only public sector oil marketing company responsible for sustaining the country’s energy supply chain.
The company argued that public procurement laws regarding price disclosures and tender issuance disadvantage it compared to competitors who can secure lower prices through more flexible arrangements.
PSO expressed that these regulatory constraints impede its ability to operate profitably and sustainably, warning that the current regulatory environment jeopardizes its long-term business strategy.
PSO proposed that granting more power to its Board of Management (BOM) would enable it to function more independently and effectively. Under this plan, while the BOM would gain greater authority, the federal government would still oversee appointments and policy directives.
By gaining more control over its operations, PSO can streamline its processes, reduce bureaucratic hurdles, and innovate more effectively in product offerings and services. This strategic shift is essential as the company aims to attract and retain customers in a competitive environment.
